Home repairs are a normal part of owning a property, but unexpected breakdowns can be stressful and expensive. Whether you pay for repairs out of pocket or enroll in a home warranty plan, understanding the differences helps you plan ahead and protect your home.
In this guide, we’ll break down the basics of home warranties and how these types of protection programs compare to handling repairs independently.
Understanding the True Cost of Home Repairs
Even well-maintained homes need repairs. Repair costs vary widely depending on the age of the building, condition of internal systems, and type of work you need done. Other factors impacting costs include:
- Labor and material rates in your region
- Seasonal demand and technician availability
- Severity of the issue
Most experts recommend that homeowners set aside 1-3% of their home’s value for repairs and maintenance every year, but older homes with aging systems may require more. Planning ahead helps reduce stress when an unexpected breakdown occurs.
What Is a Home Warranty and How Does It Work?
A home warranty is a service contract that helps cover repairs for home systems and appliances when they fail due to normal wear. If a covered system breaks, the homeowner pays the service fee and the warranty provider coordinates the repair.
Typical home warranty coverage often includes:
- HVAC systems
- Plumbing components
- Electrical systems
- Water heaters
- Kitchen and laundry appliances
Home warranties also have exclusions, which can include pre-existing issues, misuse, improper installation, code violations, or uncovered appliances. Read the coverage terms carefully before enrolling in any home warranty program.
Cost Comparison: With vs. Without a Home Warranty
Repair costs vary, but here’s how expenses typically compare under a warranty versus paying out of pocket.
With a Home Warranty
Home warranty plans cost anywhere from $400-$1000 per year, or $33-$83 per month. In addition to paying the warranty cost, you often have to pay a service call fee, usually between $100-$200. Covered repairs may cost just the fee and plan cost, rather than the full repair cost.
Without a Home Warranty
Without a home warranty, you pay all repair costs out of pocket, including parts and labor.
HVAC Systems
Repairing an HVAC system can set you back anywhere from $130-$2,000, depending on the severity of the issue. Most repairs fall between $300-$600 on average.
Electrical or Plumbing Systems
Repairs to your electrical or plumbing systems can cost $100-$1,500, depending on the issue.
Furnace or Heating Repair
Minor repairs to heating systems or furnaces, such as issues with the blower motor or thermostat, typically cost $100-$600.
Appliance Repairs
Depending on the appliance and the severity of the problem, appliance repairs can cost anywhere between $100-$400. For some, the cost of replacing the appliance is more affordable than paying to fix it out of pocket.
How Agway Can Help
While not a traditional home warranty, Agway EnergyGuard® helps cover wear and tear on eligible heating, cooling, and electrical systems,* reducing the financial pressure when a covered system breaks unexpectedly. Some consumers rely on EnergyGuard to close gaps in their warranty coverage, protecting systems that wouldn’t otherwise be protected by plans that focus only on plumbing or appliance repairs.
Who Should Consider a Home Warranty?
Home warranties are most popular with homeowners who:
- Own older homes
- Have aging appliances or systems
- Prefer predictable repair coverage
- Don’t want to pay large repair costs all at once
- Lack substantial emergency savings for repairs
People with brand-new systems or those with high emergency savings may not opt for a warranty immediately. Programs like Agway EnergyGuard are strong alternatives for homeowners seeking repair protection for heating, cooling, and electrical equipment* instead of an in-depth protection program.
Tips to Maximize Your Home Repair Budget
Whether you choose a home warranty or prefer to handle repairs independently, planning ahead helps reduce stress and downtime.
If You Choose a Home Warranty:
- Review your coverage carefully
- Confirm any exclusions
- Identify service limits and response procedures
- Keep maintenance records for proof of care
If You Choose Out of Pocket:
- Maintain a dedicated repair fund each year
- Prioritize preventive maintenance to reduce the risk of breakdowns
- Schedule annual tune-ups
- Inspect wiring, connections, and filters regularly
- Call a qualified technician early when warning signs appear
Keep Your Essential Home Systems Protected With Agway®
The cost of repairing your home can vary, but understanding average costs helps you make educated decisions about maintaining it. Whether you choose to pay for repairs out of pocket or decide to use a home warranty, it’s important to plan ahead.
While Agway doesn’t offer traditional home warranties, our customers are automatically enrolled in EnergyGuard, which helps cover eligible heating, cooling, and electrical system* repairs. If an issue is found during a maintenance visit, check your EnergyGuard coverage first to see if it’s included before paying out of pocket. You can also call Agway for technician referrals if you need an inspection or professional assistance.
Protecting your home starts with preparation. With the right maintenance habits and the support of Agway Energy Services®, you can keep your home running comfortably all year long.
Home Warranty FAQs
What’s the difference between a home warranty and homeowners’ insurance?
Home warranties and homeowners’ insurance protect your home in different ways. A home warranty covers repairs due to normal system wear, while home insurance generally covers accidental damage, such as fire or weather events.
Can I purchase a home warranty after something breaks?
Most home warranty providers require systems to be in working condition at the time of enrollment. Pre-existing issues are often excluded from coverage.
Are pre-existing conditions covered under a home warranty?
Typically, no. Most warranties do not cover issues that existed before coverage started. If you’re interested in a home warranty, you should ensure all your systems are fully operable before signing up.
How much does the average homeowner spend on repairs annually?
Spending varies depending on repairs needed and local labor costs, but most homeowners spend between 1-3% of their home value on repairs each year. These costs may be lower for those with newer systems or home warranties with high coverage.
Does Agway Energy Services® offer a home warranty?
Though Agway does not offer a traditional home warranty, our EnergyGuard program covers wear and tear on eligible heating, cooling, and electrical systems*. Some homeowners choose this program as an alternative to traditional home warranties.
*Coverage depends on commodity purchased.
